Euro Sun Mining (ESM) AI Stock Analysis

• Market Cap: C$120.53M
• Dividend Yield: N/A
• Average Volume (3M): 640.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: -77.78%
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 422,912,080
• 10 Day Avg. Volume: 637,232
• 30 Day Avg. Volume: 640,626
• PEG Ratio: -0.22
• Price to Book (P/B): -5.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 34 Underperform
• Price Target: ―

Euro Sun Mining faces significant financial challenges with no operational revenue, negative equity, and persistent cash flow deficits, weighing heavily on its score. While technical indicators show positive momentum, high valuation ratios and lack of dividend yield are concerning. The designation of the Rovina Valley Project as a strategic asset by the EU and recent financing are positive, yet overshadowed by financial instability.

Positive Factors

EU Strategic Asset Status

The EU's designation of the Rovina Valley Project as a strategic asset can expedite permitting and enhance project value, strengthening Euro Sun's market position and long-term growth prospects.

Partnership and Compliance

Securing financing and compliance with TSX conditions reflects strong partnerships and regulatory alignment, crucial for sustaining operations and achieving long-term project goals.

Project Financing

The successful financing tranche supports the advancement of the Rovina Valley Project, providing necessary capital for development and improving the company's ability to execute its strategic plans.

Negative Factors

Lack of Revenue

The absence of operational income underscores the company's inability to generate revenue, raising concerns about its capacity to achieve profitability and sustain its business model.

Persistent Cash Flow Deficits

Ongoing negative cash flow from operations highlights liquidity challenges, increasing reliance on external financing and threatening long-term operational sustainability.

Negative Equity

Negative equity indicates insolvency, posing significant risks to financial stability and limiting the company's ability to secure additional financing for future growth.

Euro Sun Mining Business Overview & Revenue Model

Company Description

Euro Sun Mining Inc. operates as a gold and copper exploration and development mining company in Romania. It primarily holds a 100% interest in the Rovina Valley project that covers an area of 27.68 square kilometers located in west-central Romania. The company was formerly known as Carpathian Gold Inc. and changed its name to Euro Sun Mining Inc. in August 2016. Euro Sun Mining Inc. was incorporated in 2003 and is headquartered in Toronto, Canada.

How the Company Makes Money

Euro Sun Mining generates revenue primarily through the exploration, development, and anticipated future production and sale of gold and copper from its Rovina Valley Project. The company's revenue model relies on successfully bringing its mining projects to operational status, thereby enabling the extraction and sale of precious and base metals. Key revenue streams include the sale of mined gold and copper on global commodity markets. Euro Sun Mining’s earnings potential is significantly influenced by factors such as mineral market prices, successful project development, and operational efficiency. Partnerships with local stakeholders and compliance with regulatory frameworks are also critical to its revenue generation strategy.

Euro Sun Mining Financial Statement Overview

Summary

Euro Sun Mining exhibits a challenging financial situation with no revenue, negative equity, and persistent cash flow deficits. Reliance on external financing for operations is unsustainable, underscoring the need for revenue generation and improved cost management.

Income Statement

Euro Sun Mining's income statement shows zero total revenue over multiple periods, highlighting the absence of operational income. The company has consistently reported negative EBIT and net income, indicating persistent operational losses. The lack of revenue and profitability poses significant challenges for future financial sustainability.

Balance Sheet

The balance sheet is concerning with negative stockholders' equity, indicating the company is insolvent. The debt-to-equity ratio cannot be calculated due to negative equity. Total assets have significantly declined over the years, and liabilities exceed assets, further highlighting financial instability. The company's financial leverage is high, raising concerns about its ability to meet long-term obligations.

Cash Flow

Cash flow from operations is consistently negative, reflecting ongoing cash outflows from core activities. The free cash flow is also negative, suggesting the company is reliant on external financing. Despite some positive financing cash flow, the inability to generate positive cash from operations is a major risk for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-3.44K	0.00	-72.54K	0.00	0.00	0.00
EBITDA	-3.61M	-2.18M	-3.38M	-6.70M	-10.46M	-10.64M
Net Income	-4.18M	448.39K	-5.47M	-8.20M	-10.90M	-12.93M
Balance Sheet
Total Assets	2.44M	725.91K	673.00K	1.49M	1.51M	10.23M
Cash, Cash Equivalents and Short-Term Investments	1.74M	116.35K	45.02K	912.67K	182.09K	8.70M
Total Debt	3.48M	243.24K	700.34K	2.49M	318.92K	187.57K
Total Liabilities	6.51M	2.86M	5.61M	5.66M	3.41M	3.10M
Stockholders Equity	-2.93M	-2.13M	-4.94M	-4.17M	-1.89M	7.13M
Cash Flow
Free Cash Flow	-4.76M	-1.98M	-2.38M	-4.54M	-9.78M	-11.99M
Operating Cash Flow	-4.75M	-1.98M	-2.38M	-4.53M	-9.60M	-11.84M
Investing Cash Flow	-11.14K	903.00	-15.38K	-9.30K	472.55K	-1.71M
Financing Cash Flow	6.47M	1.82M	1.65M	5.27M	1.39M	19.90M

Euro Sun Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESM, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.21, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 78.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESM.

Euro Sun Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SANU	51 Neutral	C$120.33M	-37.33	-15.41%	―	―	48.28%
LIO	48 Neutral	C$116.83M	-69.05	-0.57%	―	160.50%	96.56%
ABI	46 Neutral	C$117.05M	-4.71	―	―	-100.00%	-7.21%
ESM	34 Underperform	C$120.53M	-22.27	―	―	―	-77.78%
YARR	34 Underperform	C$115.84M	-19.83	-63.46%	―	―	-652.38%

Euro Sun Mining Corporate Events

Euro Sun Mining’s Rovina Valley Project Gains EU Strategic Asset Status

Euro Sun Mining’s Rovina Valley Project has been designated as a strategic asset by the European Union, allowing for expedited permitting under new legislative guidelines. This recognition not only supports Euro Sun’s operations but also positions Romania as a key player in the supply of critical raw materials essential for Europe’s strategic interests and energy transition.

Euro Sun Mining Closes Financing Tranche and Issues Debenture for Project Advancement

Euro Sun Mining Inc. announced the closure of the final tranche of a non-brokered private placement, raising C$274,000 through the issuance of units priced at C$0.05 each. The proceeds will be used to advance the Rovina Valley Project and for corporate purposes. Additionally, Euro Sun issued a $350,000 debenture with a director’s holding company, secured against company assets, to fund mining license fees and working capital, marking a related party transaction.

Euro Sun Mining Secures Third Tranche of Financing for Rovina Valley Project

Euro Sun Mining has successfully closed the third tranche of its non-brokered private placement financing, raising C$285,045 by issuing 5,700,900 units at C$0.05 each. The proceeds will be used to advance the Rovina Valley Project and for general corporate purposes, with the offering receiving conditional approval from TSX to extend until February 13, 2025.